Finance Minister Nirmala Sitharaman on Friday announced the third tranche of economic measures under the Rs 20 lakh crore economic package to kickstart Indian economy's growth amid Coronavirus crisis. While rolling out the third tranche of measures the Finance Minister stated that the Essential Commodities Act, 1955 will be amended to help provide the farmers with a better price share.
A major change that will be brought through this amendment is the de-regulation of agricultural products such as edible oils, oilseeds, pulses, onions and potato have been deregulated. A stock limit will also be imposed under very exceptional circumstances and no such stock limit shall apply to processors or value chain participant.
Government to amend the Essential Commodities Act to enable better price realisation for farmers; agriculture products including cereals, edible oils, oilseeds, pulses, onions, and potatoes to be de-regulated: FM pic.twitter.com/vdiWzrcBge— ANI (@ANI) May 15, 2020
Nirmala Sitharaman divided the 11 key measures under the third tranche into 8 pertaining to infrastructure and the remaining 3 pertaining to Government and administration reforms. The amendments of the Essential Commodity Act fall under the Government and administration reforms along with Agriculture marketing reforms to provide marketing choices and Agriculture produce price and quality assurance. The three main reforms under Government and Administrative sector include-
The Government will bring agriculture marketing reforms to provide marketing choices to farmers via a Central law. This will help provide adequate choices to farmers to sell products at an attractive price, barrier-free inter-state trade and a framework for e-trading of agriculture produce
Government to bring in law to implement agriculture marketing reforms to provide marketing choices to farmers; law will provide adequate choices to farmer to sell produce at attractive price#AatmaNirbharDesh #AatmanirbharBharat pic.twitter.com/LdnhUGoPZ1— PIB India #StayHome #StaySafe (@PIB_India) May 15, 2020
The Government will create a legal framework that will enable farmers for engaging with processors and aggregators, large retailers, exporters in a transparent way. Risk mitigation for farmers assured returns and quality standardization shall form an integral part of the framework.
To provide assurance to farmer on Agriculture Produce Price and Quality, facilitative legal framework will be created to enable farmers for engaging with processors, aggregators, large retailers, exporters etc. in fair and transparent manner#AatmaNirbharDesh #AatmanirbharBharat pic.twitter.com/OiJQelWvMc— PIB India #StayHome #StaySafe (@PIB_India) May 15, 2020